ICICI Bank, ING Vysya fined for flouting KYC norms
10 October 2012
ICICI Bank, India's largest private lender ICICI Bank, and Bangalore-based ING Vysya Bank were today penalised by the Reserve Bank of India (RBI) for violating 'know you customer' (KYC) norms.
ING Vysya has been fined Rs55 lakh and ICICI Bank Rs 30 lakh for contravention of various directions and instructions issued by the central bank on KYC norms, anti-money laundering standards, combating of financing of terrorism, and the Prevention of Money Laundering Act, 2002, RBI said in an order.
The central bank order said these banks failed to obtain adequate documents for opening accounts, to carry out sufficient customer identification procedures, failure to examine control structure of entities and to ascertain the identification of natural persons behind entities, and delay in filing 'suspicious transaction' reports.
A show-cause notice was served to these two banks earlier. The central bank has imposed the penalties after studying the banks' responses in the form of written replies and oral submissions.